6. GL Report Classification on MIS Class

In order to manage cumbersome information, you can classify it under broad heads called classes. An MIS Class is an entity based on which you can classify information relating to customer and internal general ledgers. Based on your requirement, you can categorize information under MIS classes. Each class is assigned a code based on which you can retrieve information.

A class can have several categories under it, for example, under a class called business segment you can have further sub-classifications represented by categories, like, big business, small-scale industries, business for charity etc. This classification into MIS classes helps to manage efficiently information related to GLs.

Requirement:

If you want to have a consolidated report of all the loans disbursed from your bank. You also want to classify the loans into short term, medium term, and long term loans.

However, for information management purposes you want to further classify information of these GLs and sub-ledgers based on:

• The type of customer to whom the loan disbursed are categorized, could be:
  • Individual
  • Corporate
  • Banks and
  • Financial Institutions

• The industry to which the customer belongs, for instance,
  • Fisheries
  • Agriculture
  • Manufacturing
  • Software

The aim is to see that the GL structure does not become unwieldy and difficult to work with.

Solution

You can set up a GL called Loans. All loans disbursed from your bank will be consolidated at this GL. You should further set up sub-GLs to classify loans into short term, medium term, and long term loans.

We have already defined two GL levels. Instead of adding more GLs and making the structure complex, you can use the MIS class categorization to further classify information.

Therefore, you should set up two MIS classes called Customer Type and Industry type. You can have the MIS Codes Individuals, Banks, Corporate, Financial Institutions reporting to the class Customer Type. You can associate the MIS codes, Fisheries, Agriculture, Manufacturing, and Software to the class Industry Type.

This helps simplify the GL structure of the bank and serves the purpose of providing you the classified information that you require.

Note

MIS classes can be created only at the Head Office of your bank.

This chapter contains the following sections:

• Section 6.1, "MIS Class Maintenance"
• Section 6.2, "General Ledger Branch Parameters"
• Section 6.3, "General Ledger Class Maintenance"

6.1 MIS Class Maintenance

This section contains the following topics:

• Section 6.1.1, "Maintaining MIS Class"
• Section 6.1.2, "Saving the record"

6.1.1 Maintaining MIS Class

In order to maintain MIS classes, you need to invoke the ‘MIS Class Maintenance’ screen by typing ‘GLDCLSMT’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button. In this screen, you can define various categories based on which reports on general ledgers should be classified. To maintain details of a new MIS class, click new icon.

Here you can maintain the following details:

MIS class

In Oracle FLEXCUBE, each MIS class that you maintain is identified by a unique nine-character code called a Class Code. You can follow your own convention for devising this code.

Description

You can specify a short description that will enable you to identify the MIS class quickly. The short description that you specify is for information purposes only and will not be printed on any customer correspondence.

MIS Type

An important detail in defining an MIS class is to specify the type of class that you are creating. The MIS class type identifies the basic nature of the class. In Oracle FLEXCUBE you can set up the following type of MIS classes:

• Transaction class — A transaction class refers to all transactions that have taken place through any of the front-end modules like foreign exchange, money market etc. Customer Class relates to customer accounts.
• Customer class — Select this option if you are defining a customer-based classification.
• Composite class — Choose this option to indicate that the MIS class can be used both at customer definition and at the time of processing a transaction.
• Fund class — Refer to the Core Services User manual for details on setting up a Fund MIS class

This is the basic feature of a class and will determine the type of MIS codes that can constitute the class. For each of these MIS types you can create a maximum of ten classes.

Mandatory

Using this field, you can indicate whether entering an MIS code is mandatory for a particular MIS class or not. Whenever any transaction is stored, the system checks if an MIS code is supplied for this MIS class invoked in the transaction.

MIS Codes

Under a class, you can indicate the sub-divisions that should be reported under the class. Each of the sub-classes is given unique code identifiers.

The MIS codes that you associate with a class will fall under the class at the time of reporting or consolidation.

Click add icon to associate an MIS code to a class. To remove an MIS class from the list, place your cursor in that row and click delete icon.

The MIS codes that you associate will depend on the Type of MIS Class that you are creating. While setting up the details of a customer, you can associate the customer to a customer type MIS Code. Therefore the set up serves more for management purposes and makes the management of GLs simple and easy.

6.1.2 Saving the record

Click save icon to save the record. Click delete icon to exit without saving the details that you entered. An MIS Class that you have created will be available for use only after it has been authorized by a user bearing another ID.

Similarly, you cannot make any modifications to a Class or Category until the previous modification made, has been authorized.

After you have made the required entries, click ‘Exit’ button to exit the screen. You will be returned to the Application Browser.

6.2 General Ledger Branch Parameters

This section contains the following topic:

• Section 6.2.1, "Maintaining GL Branch Parameters"

6.2.1 Maintaining GL Branch Parameters

You can maintain branch level parameters that govern the processing of GL in a particular branch of your bank through the General Ledger Branch Parameters screen. You can invoke the ‘General Ledger Branch Parameters Maintenance’ screen by typing ‘GLDBRPRM’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.

The General Ledger Branch Parameter screen will be displayed.

You will need to maintain the following branch details:

Defining Branch Identification Details

Branch Code

In Oracle FLEXCUBE, each branch of your bank is identified by a unique three-character code called the branch code. This code will be displayed upon invoking the screen.

Description

The description of the branch will be displayed by default when the screen is invoked. You can also specify the name that identifies the branch.

Defining Batch Processing Details

You can define Batch Processing Details in way detailed below.

MIS Average Balance Retention Days

The MIS average balance details will be retained in the system only for those numbers of days you mention in this field. The Retention day is entered always in terms of days and is greater than the system date.

General Ledger Average Balance Retention Days

The GL average balance details will be retained in the system only for those numbers of days you mention in this field. The Retention day is entered always in terms of days and is greater than the system date.

Note

When a GL-MIS average balance report is requested for a date beyond the retention date, the system will display an error message stating that the data is not available.

Account Statement Retention Days

The Customer Account Statistics will be retained in the system only for those numbers of days you mention in this field. Specify the retention days in terms of days and which is greater than the system date.

All records older than the period that you specify are purged as part of the purge process. The purge process should be initiated manually. The current period data is not purged.

General Ledger MIS Process Days

Those events, which have to be triggered automatically, will be processed accordingly during batch process. You have the option to specify whether the batch process should be processed as part of the EOD process till the next working date - 1 day or not.

Check the box to indicate that the processing has to be done till the next working date - 1 day. Leave the box unchecked to indicate otherwise.

General Ledger Average Balance Process Days

Computation of Average Balance can be based on the Next Working Day-1 or System Date. If the average balance calculation basis is NWD-1, the balances of holidays are included in the previous working day. If the calculation basis were System Date, the balances of holidays are included on the next working day provided the next working day is in the same period. If the basis is System Date but the next working day is in the next period, the holidays are considered during the current run.

6.3 General Ledger Class Maintenance

This section contains the following topic:

• Section 6.3.1, "Maintaining GL Class"

6.3.1 Maintaining GL Class

You can group GL charts of accounts that belong to the particular business entities through the ‘General Ledger Class Maintenance’ screen. You can invoke the ‘General Ledger Branch Parameters Maintenance’ screen by typing ‘STDGLCMT’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.

GL Class Code

Specify the unique code given to the specific group of GLs. You can enter a maximum of 3 alphanumeric characters.

GL Class Name

Specify the GL Class Code name. You can enter a maximum of 255 alphanumeric characters.

GL Code

Specify the GL code. The adjoining list displays all the GL codes maintained in the system. You can choose the appropriate one.

GL Description

The system displays the GL account description.